Investors Flock to Bonds and Stocks Amid Interest Rate Speculation

According to Bank of America's global fund manager survey, investors expect a soft landing for the economy, with a majority believing that the Federal Reserve hiking cycle is over and expecting lower bond yields. Despite concerns about fiscal policy being too stimulative, investors have reduced cash levels and increased bond overweight. The survey also highlights a contrarian play for 2024, "long leverage, short quality," which implies a bullish bet on companies that need to borrow and a bearish bet on companies with healthy balance sheets. Stock futures and bond yields are flat ahead of CPI data.